Fiscal court opposes state plan to centralize collection of local occupational taxes

Logan County Fiscal Court on Feb. 25 adopted a resolution opposing proposed state legislation that would give the Commonwealth of Kentucky an option to collect local occupational and business licensing fees centrally (a proposal described in discussion as similar to a Boone County model).

County staff and the court raised concerns about shifting collection to the state, including whether the state would charge fees to cover collection costs, how business-level data would be transmitted to counties, and whether smaller counties would receive timely, accurate reporting. County officials emphasized that the occupational tax represents a meaningful revenue stream for county operations and that centralization without clear guarantees on reporting, timing and fees could harm county budgeting.

The court discussed feasibility options such as improving the county—s own online payment options and permitting multiple collection choices for businesses, but the motion before the court was limited to a resolution of opposition. The court voted to adopt the resolution and asked staff to share the county—s concerns with the state legislative contacts and to encourage coordination among other counties considering similar resolutions.

Ending: The court approved the resolution opposing the centralized collection option and asked staff to distribute the resolution to state legislators and to work with other local governments that share the concern.